An insurance company has removed an age restriction in its policy on motor insurance following a case taken by the Equality Authority. It has also paid compensation to a young man for refusing to quote him for motor insurance because he was under 25.
The authority was asked to intervene on behalf of 23-year-old Mr Colm Donoghue, who had been a named driver on his parents' insurance with First Call Direct.
When he rang its call centre in November 2001 seeking a quote, the centre refused on the grounds that he was under 25, and said it did not offer motor insurance to people under this age.
The refusal of service had no relationship to any previous history relating to Mr Donoghue's claims or accident record.
The Equal Status Act prohibits discrimination in the provision of goods and services on a number of grounds, including age. In a previous landmark decision relating to another insurance company, the Equality Tribunal ruled against discriminating against people over 70.
The Equality Tribunal is a quasi-judicial body, as opposed to the Equality Authority, which is a representative and advocacy statutory body.
That ruling said it was discriminatory to have a blanket ban on offering cover to people on the grounds of age alone, without having regard to the individual's specific circumstances and the level of risk.
The Donoghue case was listed for hearing by the Equality Tribunal. On the day of the hearing the company's representatives stated that the company had now changed its policy and removed the lower age limit for quotations.
The claim was therefore settled and financial compensation paid to Mr Donoghue. He said yesterday that he was unable to reveal the amount.
Prior to the settlement, Mr Donoghue obtained motor insurance from another company, he told The Irish Times yesterday.
Welcoming the outcome of the case, Mr Niall Crowley, chief executive of the Equality Authority, said: "This is an important settlement in further developing the application of the Equal Status Act to the provision of insurance. It sets a lead in relation to the removal of age limits which we hope will be followed across the industry."
He also said 21 case-files with the authority relate to the insurance industry. These include claims of failure to provide service on the grounds of age, gender and disability.